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Payne's Picks

Is Your Portfolio Ready for a 3-D Printing Revolution?

By Payne's PicksFOXBusiness

Could Stratasys shares print your way to big profits?

FBN’s Charles Payne, retail analyst Hitha Prabhakar, Penn Financial Group founder Matt McCall, FBN’s Tracy Byrnes and reporter Kate Rogers debate the outlook for Stratasys.

Let’s talk about Stratasys, Ltd. (NASDAQ:SSYS).

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I’m pretty sure I was one of the first guys to talk about 3-D printing on TV. As a matter of fact -- the first time I recommended this stock to my subscribers on July 18, 2003 it was $41. I again became real excited about the space in 2012, and after waves of doubters and short attacks, I think this stock is ready to go up -- and I think people should own it. Now, there are some goofy ideas for 3-D printing, but make no mistake this technology will revolutionize just about everything. I’m talking architecture, automotive, commercial production, defense, dental, education, entertainment, the medical industry-- all of it.

Stratasys has made smart acquisitions, including Makerbot and recently a company called Solid Concepts and Harvest. In the most recent quarter, revenue was up 54%, the gross margins were up almost 61%, operating margins were up 22.8%. On the retail side, the company has entered into a deal with Home Depot (NYSE:HD), it’s going to sell units on its website and certain brick and mortar stores. As a pilot, I wouldn’t be surprised to see that go national just in time for Christmas.

But the real big money is going to come from manufacturing. The street has modeled for 25% annualized growth over the next several years, but I think that’s too cautious.  Yes, it’s a volatile stock.  Yes, 13% of the float is short. But, I’m looking for a move to $116, I’m looking for a breakout there. When it goes through there, north, I’m looking at $160, and I think that could be an understatement.


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